The $352.9 million in sales was down compared to the year-ago quarter when it earned $11.6 million, or 12 cents a share, on sales of $403 million.

"During the past quarter we faced a number of challenges that impacted our PC business, including component supply shortages in the notebook business and aggressive pricing by competitors in the government sector," said CEO Joel Kocher in a prepared release.

Company officials said sales in its PC business fell to $259 million compared to $364 million in the year-ago first quarter, in part due to a 41 percent slip in notebook sales spurred by supply constraints following the Sept. 21 Taiwan earthquake.